After hitting all-time highs, a sense of caution may creep in trading on Thursday in the Indian stock market. Weekly expiry in the derivatives segment, weakness in the broader market and Friday’s review of the monetary policy by the Reserve Bank of India are the main triggers for the market.
The Nifty futures trading at Singapore is 14 points up at 16,274 against the regular close of 16,256 in India, indicating firm opening. After selling Indian shares for four months, foreign portfolio investors have become aggressive buyers. On Wednesday, FPIs pumped in Rs2,828 crore in the cash market against selling by domestic funds. Aggressive buying by foreign funds may support buying if profit booking emerges at the higher levels.
“On the technical chart, the bullish pattern has formed, However, there would be some resistance at a higher level that may invite profit booking. This may take Nifty to 16100 to 16200 level,” Kotak Securities said.
The list of stocks in the news includes Vodafone Idea, Adani Power, Reliance Industries and others. Promoter and non-executive chairman Kumar Mangalam Birla on the late evening of Wednesday stepped down from the board of debt-ridden telecom company Vodafone Idea. The news may accelerate the fall in the shares of the company, which has already lost a quarter of its value in the last week.
Reliance Industries announced a mega PET bottle recycling plant in Andhra Pradesh. In late news, its e-commerce rival Flipkart got a notice from the enforcement directorate. This two news may support the share prices of India’s biggest firm.
